Just Don’t Do It; Advisor Gets 14 Year Sentence For Bilking Elderly Clients

Don’t do it. Should we really have to say it? Seems that we do. Don’t ever take a dime, or re-direct a dime, of client money outside the boundaries of rules and regulations. You will get caught. Just ask Steven Pagartanis.

Per media reports:

“In December, Steven Pagartanis pleaded guilty to conspiracy to commit mail and wire fraud stemming from an 18-year scheme in which he convinced more than a dozen clients — mostly older women — to invest in two publicly traded companies, only to launder the invested money through a series of shell companies and private accounts that he controlled.”

“Pagartanis used some of the money he collected to pay out promised returns to earlier clients in what authorities described as a Ponzi-like scheme.Other funds went to bankroll personal expenses, including massages, jewelry, clothing, airline tickets and cigars. He also channeled hundreds of thousands of dollars to his wife’s failing pet store, which was losing between $7,000 and $8,000 a month, according to a U.S. attorney’s sentencing memo.”

An 18 year scheme feels like a virtual lifetime. And for his victims it will affect them and their families for a lifetime – making the punishment fit the crime.

A word about firms that you may have never heard of, and their ability to police this type of activity. While we don’t want to paint one firm or another with too broad a brush – it is much more rare to hear about a story like this at Morgan Stanley or Raymond James.

If you haven’t heard of the firm that the offender is employed at, be very, very careful. Seems like common sense – but this stuff keeps happening.

 



Share this article

Email
Twitter
LinkedIn
Author picture

Curious about switching broker dealers? Secure your 2 best offers all while remaining 100% anonymous.

Ready to start? Click here.

Leave a Reply

Secure Multiple Offers All While Remaining 100% Anonymous

CONTACT US

It’s one of the most important—and personal—questions a financial advisor can ask. Whether it’s frustrations with admin fees, limited platform flexibility, or just a gut feeling that you’ve outgrown your current firm, the decision to move shouldn’t be rushed. The right time to leave isn’t just about market timing—it’s about life timing.

If you’re weighing your options, we recommend this quick read: The Best Time for a Move—a blog and podcast episode that walks through key signals it may be time to explore a transition.

There’s no one-size-fits-all answer. Going independent offers more control, higher payouts, and brand autonomy—but with added responsibilities. Wirehouses provide built-in infrastructure, brand recognition, and turnkey support—but often come with more restrictions and fees.

The real question is: Which model makes the most sense for your business goals and lifestyle?

To make a confident decision, you need to understand the economics behind both paths. Start by securing transition offers from top firms—independent and wirehouse—so you can compare side-by-side.

Get Your Offers in Hand

Our services are 100% free to financial advisors. We don’t charge you a dime. If you decide to make a move, the new firm pays us a finder’s fee—similar to a recruiter. But unlike recruiters, we’re not tied to any one firm, so we work to find your best fit, not theirs.

Want the full breakdown? Check out our blog post: How We Get Paid

© 2024 3xEquity, LLC. All rights reserved

Transition packages from top regional and national broker-dealers like LPL, Ameriprise, Wells Fargo, RBC, Cetera, Dynasty, UBS, and more.